Central banks stand still as Alphabet slides

Three decisions and a departure

The Federal Reserve held US interest rates steady on Wednesday evening. The European Central Bank did the same on Thursday, leaving its key rate at 2.5%. The Wall Street Journal reported that Treasury yields fell after the major central banks' hold. The move carried into Asia, where the Singapore dollar strengthened early on Friday. In Tokyo the Nikkei extended its losses and the yen strengthened after the Bank of Japan's decisions.

The American hold came against firm numbers. CNBC reported that third-quarter GDP grew by a better-than-expected 3.4%, while September inflation accelerated. The Guardian put inflation at 3.7%. The BBC set out what a steady rate and a growing economy might mean for households. CNBC also ran an analysis arguing that Kevin Warsh is keeping Wall Street guessing, and that this may be his most powerful tool.

The ECB's decision was soon overshadowed. Christine Lagarde announced that she will leave a year early, appearing on video with plasters on her face after what This is Money called 'small surgery'. Sky News linked the departure to the coming French election and asked whether she would stand. Before quitting, she had told Euronews: 'I'm not a candidate for anything.' CNBC turned to the politics of the early exit and to the question of who might replace her.

Sky News noted that the Bank of England's own verdict was still to come.

Alphabet takes the Nasdaq down

Alphabet's results set the tone on Thursday. Euronews reported early in the day that shares were mixed after the Google parent's earnings disappointed. By the close the mood was harsher. The BBC said Google's value had plunged by $500bn as fears about artificial intelligence rattled Wall Street. This is Money put the loss at more than £400bn and described a record-breaking rout that had stirred fears of an AI crash. The Wall Street Journal reported that Alphabet's stock sank and dragged the Nasdaq lower with it.

Alphabet was not alone. The Journal's live coverage carried the headline that AI jitters were spreading as results from Intel and Amazon disappointed. The Guardian, reporting on Amazon's numbers, said the company had given Wall Street a mixed financial picture.

The prospect of an Anthropic flotation drew comment from two directions. The South China Morning Post noted that Anthropic is eyeing a mega-IPO and asked why Chinese tech valuations sit so far behind. A Wall Street Journal opinion piece argued that the listing would be a national-security win for Taiwan.

In China itself, BYD and Geely reported jumps in profit as sales abroad surged, though the SCMP noted that their local market had stalled. Evergrande's liquidators, meanwhile, sold a controlling stake in the group's property services unit for US$513 million.

Oil profits and British tax

In London, Thursday brought a run of large results. Shell said its profits had doubled to $10.8bn, and the Guardian attributed the rise to the Iran war pushing up the margin on oil. Sky News reported profits up by billions at Lloyds, the UK's biggest mortgage provider, as well as at Shell. On Friday morning City A.M. expected the FTSE 100 to rise, with oil higher as the US considers strikes on Iran.

Not every result was welcome. Haleon's shares sank amid weak demand for cold and flu medicine, This is Money reported.

Banks face a different pressure. City A.M. reported that NatWest and Nationwide are set for the biggest profit hit from Healey's bank tax raid. The same paper described a pension tax shield as 'bizarre' and said it would leave thousands of retirees facing a 53 per cent tax rate. The BBC reported, separately, that bereaved families will not face a tax bill over pension delays under new rules.

On the Continent, ING launched a buyback but flagged job cuts and a restructuring of one of its units. In the US, Intercontinental Exchange posted higher profit and revenue. DW reported that US moves to lift sanctions on Russia's shadow fleet could undermine Western pressure on Moscow and help fund its war in Ukraine.